Force Motors gives nod to reducing ZF licence period

Pune: Pune-based commercial vehicle manufacturer, Force Motors Ltd (FML) has agreed to reduce the term of a licence granted by ZF Friedrichshafen AG to manufacture its 9-speed gear box. This is to facilitate manufacture of the gearboxes at ZF’s own plant in India, subject to approvals.

If the agreements are reached and approvals received by either ZF or its nominee to manufacture these gear boxes in India, FML stands to gain approximately Rs 50 crore (€80,00,000) as compensation from the German company for accepting reduction of the term.

In a written reply on the matter, Mr Abhay Firodia, Chairman and Managing Director, FML, said in 2004, two licenses had been obtained from ZF to manufacture 9-speed planetary, and 6-speed gear boxes. This was because no manufacturer was producing them in India for sale to OEMs. Also, FML required to source and localise the technology for its HCV project.

ZF’s OWN UNIT

“Lately, ZF has expressed a desire to enter the Indian market and to manufacture gearboxes in own plant in India, which they propose to set up in the near future. In consideration of this, Force Motors has entered into an MoU for reducing the term of the licence for the planetary 9-speed gearbox to them, in the event they do establish manufacture in India. It will continue to keep the technology for the 6-speed gearbox,” Mr Firodia said.

In the interim period, after signing of the final agreement for reducing the term of the licence, the 9S gearboxes will continue to be produced in Force Motors till ZF’s proposed plant comes into operation. “At that time the production and assembly equipment will be transferred to the new plant,” he added.